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MaxLinear obtains $175 million secured incremental term loan
By Sarah Lizee
Olympia, Wash., Aug. 3 – MaxLinear, Inc. entered into an incremental amendment on Friday to its credit agreement with MUFG Bank, Ltd. as administrative agent, providing for the incurrence of a $175 million secured incremental term loan, according to an 8-K filing with the Securities and Exchange Commission.
JPMorgan Chase Bank, NA was previously the administrative agent.
The incremental term loan was fully funded on the closing date and matures on July 31, 2023.
The proceeds were used to finance the acquisition of Intel Corp.’s home gateway platform division and related assets and to pay related fees and expenses. Any remaining but otherwise unused proceeds from the incremental term loan will be used for general corporate purposes.
Interest is Libor plus 425 basis points, subject to a Libor floor of 0%. During any period during which MaxLinear fails to maintain a public corporate rating from S&P that is equal to or higher than BB- and a public corporate rating from Moody’s Investors Service that is equal to or higher than Ba3, or fails to maintain a total leverage ratio of 3x or less, the margin will increase to 475 bps.
MaxLinear is also required to pay other customary fees and costs.
The incremental term loan amortizes in quarterly installments of principal equal to 1.25% of the original aggregate principal amount on the last day of each of the first full fiscal quarters following the closing date, 2.5% on the last day of each of the fifth through the eighth full fiscal quarters after the closing date and 3.75% on the last day of each of the ninth through the 11th full fiscal quarters after the closing date. The remaining outstanding principal amount is due on the maturity date.
MaxLinear is a Carlsbad, Calif.-based provider of integrated radio frequency and mixed-signal integrated circuits for the connected home and wired and wireless infrastructure markets.
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